Key Impact Points:
- The European Commission has abruptly moved to withdraw the Green Claims Directive just before its expected approval, despite progress in trilogue talks.
- The decision undermines a key pillar of the EU Green Deal, prompting backlash from MEPs and Council representatives who see it as overreach.
- Legal experts warn the move may challenge EU institutional balance, as no formal justification or procedural transparency has been provided.
Commission Pulls Plug on Greenwashing Proposal
The European Commission has announced it plans to withdraw its proposed Green Claims Directive, a central piece of its Green Deal strategy designed to curb greenwashing in corporate marketing. The legislation aimed to ensure companies’ environmental claims were “accurate, substantiated and independently verified,” according to a Commission spokesperson.
The directive, first introduced in March 2023, was set to go through final trilogue negotiations on Monday, with the Polish EU Council presidency and Members of the European Parliament (MEPs) reportedly ready to finalize the deal.
A Sudden and Controversial Retreat
The Commission justified the move by citing concerns over the proposal’s compatibility with its legislative simplification agenda, particularly its potential impact on “around 30 million micro-enterprises.”
“This would distort the proposal, preventing the achievement of the objectives pursued, such as supporting the development of green markets, while preventing undue burden on the smallest enterprises,” a Commission spokesperson explained.
However, the announcement was met with shock by negotiators, who criticized the Commission’s unilateral decision.
“It is unacceptable that the Commission blatantly interferes with the progress made by co-legislators on this file,” said a member of Parliament’s negotiating team.
Despite the Commission’s announcement, Poland’s EU Council presidency stated it would continue preparations for Monday’s trilogue:
“[The Council] is ready to enter constructively into the trilogue and go ahead as planned until there is a clear decision from the Commission [on the withdrawal],” a Polish spokesperson told Euronews.
Legal and Institutional Questions Mount
The move not only delays legislative action but has triggered concerns over legal overreach. While the 2015 Court of Justice of the EU ruling confirmed the Commission’s ability to withdraw proposals under its right of initiative, it set conditions: withdrawals must be substantively justified and follow proper procedure.
No such justification—such as institutional deadlock or obsolescence—appears to apply here, raising questions about whether the Commission is using this authority to override co-legislators.
“The current discussions around the proposal go against the Commission’s simplification agenda,” a spokesperson noted, but offered no detailed rationale.
As of now, it’s unclear whether the College of Commissioners, led by Ursula von der Leyen, has formally adopted the withdrawal.
Another Setback for the Green Deal
This marks the latest in a string of Green Deal rollbacks, including the weakening of the Carbon Border Adjustment Mechanism through recent Omnibus revisions. The removal of the Green Claims Directive may signal waning momentum behind the EU’s flagship climate agenda.
Negotiators Delara Burkhardt (S&D) and Sandro Gozi (Renew) are reportedly still pushing to continue talks on Monday.
Unless reversed or delayed, the Commission’s decision could upend one of the EU’s most ambitious regulatory efforts to combat corporate greenwashing, and further erode confidence in the bloc’s environmental leadership.
Related Article: EU Council Advances Green Claims Directive to Combat Greenwashing
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